High commodity prices may not dent Nifty FY22 earnings much: Report

The adverse impact on the margins of Auto, Consumer Staples and Consumer Durables sectors will be counterbalanced by an earnings uptick in the Metals, Cement and Oil & Gas sectors, MOSL analysts belie

A spurt in most commodities over the past few weeks has brought the spotlight back on inflation, which many fear will adversely impact the earnings of India Inc. While the scenario may hold true for the non-Nifty baskets, the Nifty50 index earnings may largely remain unscathed, suggests a report by domestic brokerage Motilal Oswal Financial Services (MOSL).

Historical data shows that rising commodity prices have had a positive impact on aggregate index earnings, MOSL said, and since the last 12 years, the Nifty earnings have closely tracked the movement in commodity prices.

"Rising commodity price scenario will benefit only 11